QUESTION:
Dear Mr. Tan,
Thank you for regular updates in your blog. It is interesting, relevant and useful.
Could you discuss a little on regular savings plan for your investment funds products, using CPF OA and SA?
I am sure other readers would be keen to know if there is such a plan as it potentially helps to beat the CPF returns (if using CPF funds for investment). If there is no RSP arrangements, would NTUC be looking into this?
REPLY
Dear
NTUC Income has a regular savings plan. It is called the Ideal plan. It has to be paid by cash.
Alternatively, you can invest your CPF savings (ordinary or special account) as a single premium under our Flexilink plan. You can top up your savings at any time with a "recurring" single premium, provided that the top up is at least $1,000.
The advantage of a single premium plan is that the charge is very low.
This customer has confidence in our combined fund. He wish to invest his CPF savings through monthly premiums.
ReplyDeleteWe will be making this available soon. The monthly premium can be as low as $100. Top up is allowed for additional amounts.
100% of the premium will be invested from the first month. The charges is at a modest level, ie 3.5% for the initial charge and less than 1% for the annual charge.
The charge is lower than unit trusts. So, a larger part of the return accrue to the customer.